U.s. Halts Aid To Panama, Studies Exile For Its Leader

July 23, 1987|By Washington Post

WASHINGTON — The Reagan administration has quietly suspended military and economic aid to Panama, rejected a request to buy tear gas for use against demonstrations and downgraded its contacts with strongman Gen. Manuel Antonio Noriega as U.S.-Panamanian relations have gone sour in recent weeks, according to administration officials.

The U.S. actions have not been announced. They reflect a growing belief at high levels of the administration that Noriega's domination of Panama is both unacceptable and under greater pressure than at any time since he took power as commander of the Panama's defense forces in August 1983.

Sources said U.S. contingency planning has begun for facilitating the departure of Noriega, including the question of where he might go into exile. A senior official, while saying such matters are being talked about within the administration, said no contacts have been made with other countries that might accept the Panamanian military leader.

There is no consensus within the government that Noriega is nearing the end as the most important power in the Central American country, which is vital to the United States because of the Panama Canal and a long history of military cooperation.

A U.S. policy-maker said the reaction of Panamanians to Noriega in political protests and large-scale demonstrations since early June suggests that ''Noriega's days are numbered -- but that number could be dozens, hundreds or even thousands of days.''

All new commitments of U.S. military and economic aid were quietly suspended this month after supporters of Noriega, believed to be coordinated by the Panamanian government, attacked the U.S. Embassy and consulate in Panama City with rocks and red paint. The cutoff extended to a ban on maintenance and repair provided to the Panamanian military by the U.S. Army, the only part of the U.S. action that has been publicized.